Economic Growth Cost Benefit Analysis
Bangladesh is a 3rd universe state located in South Asia. Bangladesh has a population of about 160 million doing it one of the most dumbly populated states, because of its significantly little size. Bangladesh was a portion of East Pakistan in the early old ages of the 1920s, it was separated in the twelvemonth of 1971 after the Bangladesh Liberation War. What led to this separation was political issues, agitation and civil noncompliance. Although Bangladesh was independent in 1971, the state had grown battles of poorness, dearth, political convulsion and military putschs. Bangladesh is considered to be a 3rd World state as it faces legion political, societal, economic and environmental alterations. This state has a really high denseness as it is merely approximately 57,000 sq stat mis with a population of five times of Canada.
Bangladesh has a quickly turning Market Based Economy as it is a developing state within the in-between E. It is the world’s taking exporter of fabrics, fish, seafood and has an astonishing base on life scientific disciplines and engineering. The fabric industry in Bangladesh is by far the biggest industry in the state and it falls 2nd in the full universe as the 2nd largest fabric industry next to the 1 of the largest states, China. Bangladesh is still turning economically at a significantly high rate as it is still developing through all the hapless substructure and political instability. The GDP per captia in this state last twelvemonth was significantly low at a value of $ 2,100 which is a 5 % addition from the old old ages. By the twelvemonth 2013 there were about 5,000 garment mills in Bangladesh employing over 4 million workers who were largely adult females. This industry generates about $ 19 billion a twelvemonth in gross. Child Labour is a common sight in Bangladesh as there is estimated about 1 million kids, from 10-14 old ages of age, who are working in garment mills with hapless conditions. By 2005 the ready-made garments industry was the lone billion dollar fabrication and export industry in Bangladesh, which generated 75 % of the country’s net incomes that twelvemonth. Bangladesh has many issues within the fabric industry but the most recent and eccentric incident was the 2012 Dhaka Fire which took topographic point in a garment mill in the metropolis of Dhaka, Bangladesh. The casualties included the decease of about a 100 people and 200 plus hurts. This was one of the greatest industrial catastrophe to happen in Bangladesh. This mill was in misdemeanor of the safety processs to be followed in mills which caused the many casualties.
Workers– Labor in the fabric industry is to a great extent dependent on the people working at that place as there engineering is non really advanced or excessively expensive of an option to see utilizing. Although the engineering is pricy, most mills are developing new engineerings that will assist the efficiency of the workers without cutting them short. This industry has about 4 million workers in it, which most of them are non satisfied with the manner they are being treated and really low rewards. Protests in these states occur often due to the high sum of workers demanding higher rewards and better working conditions. This industry generates about 20 billion USD a twelvemonth while its lone paying its workers a minimal pay of $ 38 USD a month. The workers are now demanding an addition to $ 100 USD a month. The workers in this industry would be seen as also-rans in this multi-million dollar company as they are acquiring really low rewards and atrocious on the job conditions.
Importers from Foreign Countries– Bangla desh has a one of the lowest rewards in the full World. Although the rewards are low many people are working to back up themselves and their households. The low rewards leads to really inexpensive fabrication of goods in this state. The fabric industry, largest industry in Bangladesh, can be looked upon as an illustration. Garments are made really inexpensive within the mills in mills located in Bangladesh and are hence sold at significantly low monetary values to large companies such as Walmart. These companies take advantage of the low monetary value they can buy the goods at instead than purchasing from mills with better working conditions and higher rewards. They can sell these merchandises at lower monetary value than the market monetary value and still do important net income. The importers that are located in foreign states importing fabrics are victors, as they get the goods at a inexpensive monetary value which allows them to put low monetary values and sell out rapidly, while still doing big net incomes.
Textile Factory Owners– Factory and company proprietors are really profit based, particularly in a state with a corrupt economic system like Bangladesh. Many mill proprietors push their workers to the bound by doing them make inordinate labor with low rewards. Their end is to make the highest sum of merchandise every hr so that they can sell it at a steady rate to companies all around the universe. These proprietors besides do n’t hold much attention for the workers as they are mistreated and are being prioritized second after money. An illustration of this would be the 2012 Dhaka fire, which took the lives of about a 100 workers working at this fabric mill. The mill had exigency issues, but were locked so workers would hold to work long hours without leave. The mill was in misdemeanor of the safety regulations and did non update there fire certification records. The workers were expected to work long hours in a mill that had non been certified to be safe, merely so that the money could be made without any problem. The fabric mill and company proprietors are victors as they make immense sums of net incomes while non passing clip or money looking after their workers.
Costss vs. Benefits
Slow Modernization of Equipment/Machinery:The fabric industry in Bangladesh has outdated equipment and machinery. The fight of this industry has easy been worsening because of its rivals going quickly modernized. The disused engineering in this industry causes the cost of production to be significantly higher in Bangladesh compared to other states such as India or China.
Industrial Safety:There have been a batch industrial catastrophes within the fabric industry in Bangladesh. Some of the largest catastrophes have happened in recent old ages such as the 2012 Dhaka Fire and Rana Plaza Tragedy, both of which took the lives of many workers. These catastrophes are coincident due to the deficiency of safety reviews and the followers of safety ordinances. The workers are being mistreated in many mills and are besides being underpaid.
Protests over Wages and Better Treatment:There have been many protests go oning in Bangladesh due to the ailments of many underpaid and abused workers. Some of the largest protests lasted for yearss with the result of many casualties. These protests caused many mills to temporarily shut until state of affairss were settled. Workers demanded higher rewards but it was hard for mill proprietors to run into this demand as the addition in rewards would dissatisfy the foreign purchasers as the monetary values of the garments would increase.
Rise of Bangladesh’s Economy:Bangladesh is good known for it textile industry and most of the money in that state is collected through the fabric industry. Bangladesh has a fighting economic system and marks of betterments are chiefly shown through the addition of the devising and exportation of garments. The fabric industry generates about $ 20 billion USD a twelvemonth in the Country of Bangladesh.
Occupations:There are about 4 million workers working in many different mills in the fabric industry of Bangladesh. Bangladesh has a really high unemployment rate and with the booming of the fabric industry, there are many occupation chances open for people seeking to fund themselves of their loved 1s.
Cheap Clothing for Foreign Businesss:Many companies from US or EU turn to foreign developing states to make concern with. This is due to the significantly low sum of labor costs in these 3rd World Countries, such as Bangladesh. Workers in the fabric industry in Bangladesh are paid really low which leaves more flexibleness of costs to the concerns looking to purchase garments at a low monetary value. These garments are so sold at besides a low monetary value which satisfies clients and keeps the demand up. Although late the importation of fabrics in US from Bangladesh has been really low, the state is still one of the largest in the fabric territory.
- The deficiency of preparation and engineering is a large issue in the fabric industry in Bangladesh. Many of the workers lack the needed preparation which could basically take to more efficient mills. The importance of preparation is critical as a individual with non as much preparation will execute ill compared to a individual with important sum of preparation in the work topographic point. The fabric industry needs to look at a better manner of developing its workers even if that means that it is cut from the net income. Training could be provided through either plans within single mills or schools that teach workers extensively after they have been hired. Another betterment that can assist this industry is the modernisation of engineering. Many industries in the old old ages have been puting in better engineerings in order to do goods more expeditiously. This modernisation has non yet been applied to the fabric industry in Bangladesh. With the betterment of engineering, this industry could see a important addition in gross revenues and the devising of goods would be a batch more efficient.
- There have been many safety issues in the yesteryear in the fabric industry in Bangladesh. A batch of these incidents included the casualties of many guiltless workers and citizens. These issues were due to the deficiency of safety appraisal done on garment mills in Bangladesh. The 2012 Dhaka fire was a consequence of a failure to regenerate the fire safety certification which should be done yearly, this minor error lead to the decease of 100s which was seen as a wakeup call for the fabric industry. Every individual mill in Bangladesh should hold to travel through a safety cheque in short periods of clip. This would let the mills to maintain up with the safety ordinances and guarantee that the workers and their equipment is safe. Not merely that would be benefited but besides the fact that more concerns would look into puting in the Bangladesh fabric industry as it will be seen with safe working conditions and the better intervention of the employees. In the past old ages the Bangladesh fabric industry has lost many clients due to the deficiency of safety and the mistreatment of their workers. With an attempt to looking over workers more people would be willing to make concern which will positively turn the fabric industry more.
South Asia, Bangladesh. ( n.d. ) . Retrieved November 13, 2014, from hypertext transfer protocol: //www.cia.gov/library/publications/the-world-factbook/geos/bg.html
This beginning helped me garner a batch information for this assignment. This web site is authorities controlled and contains informational facts about states all around the World. This beginning can be looked at every bit trusty as it is authorities owned. There is non any prejudice in this beginning as it as pure facts instead than anticipations. Some information I gathered from this beginning includes the GDP of Bangladesh and the background of Bangladesh and its economic system.
Bangladesh constabularies clang with garment workers protesting over rewards. ( 2013, December 25 ) . Retrieved November 13, 2014, from hypertext transfer protocol: //www.theguardian.com/world/2013/sep/25/bangladesh-police-clash-garment-worker
This beginning helped me garner information about the workers province of head in the fabric industry of Bangladesh. I besides acquired information like one-year net incomes by this industry and the incomes of the workers in these mills. This web site besides went in item depicting the protests taking topographic point in Bangladesh. There is non much prejudice in this article as it talks from both the mill proprietors and mill workers positions.
- Professionals and Cons of garment industry: Future chances and challenges of Bangladesh Garment Business. ( 2013, December 26 ) . Retrieved November 13, 2014. from hypertext transfer protocol: //texeducation.wordpress.com/2013/12/26/pros-and-cons-of-garment-industry-future-prospects-and-challenges-of-bangladesh-garment-business/
- Bangladesh fabric workers fed up with conditions | Asia | DW.DE | 25.09.2013. ( 2013, September 25 ) . Retrieved November 13, 2014, from hypertext transfer protocol: //www.dw.de/bangladesh-textile-workers-fed-up-with-conditions/a-17114602
- Penetration: Inspection tensenesss add to Bangladesh garment industry ‘s sufferings. ( 2014, June 26 ) . Retrieved November 13, 2014, from hypertext transfer protocol: //in.reuters.com/article/2014/06/27/bangladesh-textiles-idINKBN0EZ09820140627
- Bangladesh Garment Factory Fire. ( 2013, December 8 ) . Retrieved November 13, 2014, from hypertext transfer protocol: //www.huffingtonpost.com/tag/bangladesh-garment-factory-fire/
- WORLD TRADE ORGANIZATION. ( n.d. ) . Retrieved November 13, 2014, from hypertext transfer protocol: //www.wto.org/english/tratop_e/texti_e/texti_e.htm
- Towards a safer garment industry in Bangladesh. ( n.d. ) . Retrieved November 13, 2014, from hypertext transfer protocol: //www.ilo.org/global/about-the-ilo/activities/all/safer-garment-industry-in-bangladesh/lang — en/index.htm
- The way through the Fieldss. ( 2012, November 3 ) . Retrieved November 13, 2014, from hypertext transfer protocol: //www.economist.com/news/briefing/21565617-bangladesh-has-dysfunctional-politics-and-stunted-private-sector-yet-it-has-been-surprisingly